Well, looks like if Apple had any intentions regarding an offer to buy TSLA they will walk away now. Sure makes Tesla unattractive to another car company.
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There is a reason why I don't own SCTY shares, even though I have owned various solar related stocks. At best, they are a mess in all sorts of ways. Their primary business model might be crumbling. Their cash needs are just as big, if not greater with no clear return on investment. They are closer to a financial product than a technology or energy product. The street has a hard enough time valuating each company separately... as a combined entity, it would be near hopeless. Which means SCTY would kill TSLA valuation. It is a boat anchor without a clear shift in strategic planning and understanding of how the combined company would operate differently. No such strategic plans were offered in the blog post, so I remain unconvinced. I am mad because this is another unforced error.
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The world's most complicated poison pill!
Jonathan Hewitt
Active Member
I had a little bit of money in SCTY as a high risk, potentially high reward play. A gamble if you will. I had a lot of money in TSLA as I felt it to be a much better risk/reward ratio. Now Elon is mixing my gamble with my bread and butter and possibly ruining them both.
What a stupid move. I wouldn't touch SolarCity with a 10 foot pole
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Ulmo
Active Member
Someone marked this as funny, and it might have been meant that way, but I actually think this is where the best synergy will be at: political strategy. Tesla can now LITERALLY SAY their cars ARE NOT COAL POWERED. This is good political clout. And, if anyone ever does politically block Solar City at doing something and later someone (even the same or different someone) says "your cars are coal powered", Tesla can say, no, they're not, except for Mr. JoeBlow Here who Legally Stopped Solar City, for which, yes, we agree, because of JoeBlow it IS coal powered, so go blame him. Vertically integrating the clean power politics is a big win. The legal department is the part that handles most of the second to second details of what "politics" means when it's all put down on paper, kind of like accounting takes care of the money details of transactions and business.
Other than that, and what I posted earlier about inverters plugging into grids guaranteeing Tesla Energy a play in the market, I'm not sure what this buying of SCTY helps.
By the way, if someone CAN be the "baseline" power generator, then they ARE the "baseline" power generator. They cannot "follow" the other "generators" on the grid; they ARE the generators on the grid that everyone else has to follow. All the inverter manufacturers NEED TO UNDERSTAND THIS (and UNDERSTAND WHAT THIS MEANS: THEY ARE THE BASELINE GENERATORS, THE STANDARD SETTERS, NOT PG&E ET AL), and synchronize their waveforms to some international standard (by international standard I mean something like a noise-reduced GPS and/or NOAA time source, with small adjustments to maintain compatibility with legacy services, but not be following them). By Tesla buying Solar City, Tesla can enforce this concept, and take away one of the biggest political, business, technological and standards-based reasons why it's hard to sell batteries. I've been yelling on top of every tree top I can find about this for many years. I hope someone is listening, or already figured it out for themselves. Also, this is an example of something that in-housing SCTY into TSLA CAN achieve. I have to wonder with all of the possible bunglings that could happen whether this WOULD be achieved by in-housing.
stealthology
Member
Can anyone else see this happening?
CALGARYARSENAL
Member
Our boy has balls that is for sure. 100% ok with this. Ride em cowboys.
Todd Burch
14-Year Member
Although my first reaction at this is concern, I think Elon has visibility on something that we don't, and this will turn out positive for Tesla.
I also think the timing of this is a result of the realization that Q2 numbers are looking good. I have a hard time believing that they'd make this offer if Q2 wasn't smokin'.
I also think the timing of this is a result of the realization that Q2 numbers are looking good. I have a hard time believing that they'd make this offer if Q2 wasn't smokin'.
tinm
2020 Model S LR+ Owner
I see one good thing coming out of this in the next 18 hours.
TSLA will drop precipitously, and LACDF (Lithium Americas Corp, formerly Western Lithium, which has been discussed in other threads) is pretty high right now. Tomorrow I dump LACDF and use the proceeds to buy more TSLA. I've been waiting for months for this timing.
TSLA will drop precipitously, and LACDF (Lithium Americas Corp, formerly Western Lithium, which has been discussed in other threads) is pretty high right now. Tomorrow I dump LACDF and use the proceeds to buy more TSLA. I've been waiting for months for this timing.
Causalien
Prime 8 ball Oracle
No, they can't. My car charges between 1 am and 4 am. It does not use solar power. Undoubtedly, some coal power is involved. Let's not even get into marginal power and the fact that 90+% of the energy going into Tesla vehicles are not from Superchargers, and thus Tesla is not part of the majority of the energy equation. If they wanted to make a statement like this, they can just purchase the renewable energy production for their Superchargers like anyone can... no need to buy SCTY to do that.
RobStark
Well-Known Member
The State of New York is building a panel gigafactory including machinery and leasing it to Solar City for a $1 per year. SC agrees to hire X amount of New Yorkers plus generate X amount of revenue.
There are countervailing 25% import duty on Chinese solar panels. On top of this Spain and Germany stopped buying solar panels like they were hot cakes. Several Chinese solar panel companies of have gone bankrupt.
Things look good for SC new high efficiency solar panel.
This is an all stock proposal. No funds are being diverted from Model 3, Supercharger build out or Service Center build out or Gigafactory build out.
Elon Musk just made $3.75 billion disappear to buy a company that is worth $2.4 billion at his inflated price.
Does anyone think this was good for TSLA shareholders?
If this lasts 48 hrs. this will have done great harm to the shares.
Ron Baron, buyers of TSLA shares during the last offering, are you ok with this?
RobStark
Well-Known Member
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